UK REMITTANCE MARKET

• Relevant physical distribution networks in both countries
- For example, the range of relationships that UK banks
have with partner banks in the recipient country
determines the reach of the bank in that country
• Level of technology in recipient country
- For example, the use of ATMs and POS terminals have
been successfully demonstrated in the Philippines where
there are over 6,000 ATMs. This would not be feasible in
Bangladesh where there are only 21 ATMs23. The lack of
POS/fixed landline infrastructure in sub-Saharan Africa
makes similar systems impractical. Other models such
as Celpay’s mobile stored value model in Zambia and
the DRC are more appropriate. Details have been
included in Section 4.6.3
• Access to elements in the value chain
- For example, recently several MTOs in the USA have had
their corporate banking facilities withdrawn due to
regulatory concerns since the inception of the PATRIOT
Act24. These concerns centre on fears of use of the MTO
sector by criminals for money laundering and terrorist
financing purposes. MTOs whose banking facilities are
removed would either have to access another crossborder
banking network, or close down. During a series
of meetings conducted by HMRC with MTOs many
complained of the difficulty in obtaining a bank account
through which to operate MTO business.